Contract Intelligence for Automotive Companies

With the Icertis platform, leading automotive companies are embracing contract-centric sourcing to lower costs, reduce supplier risk, and accelerate time-to-market.

Contracts are the foundation of commerce, and they support the entire automotive value chain, including Engineering & Technology, Supply Chain & Procurement, Production & Operations, Human Resource Management, Partner Management, and Sales & Marketing.

Contracts have a direct impact on an organization's revenue and spending. But have you ever measured how well your contracts are performing for your enterprise? If you haven't here are the potential risks:

Suboptimal contract terms combined with suboptimal fulfillment can cause an erosion of value equal to 9% of a business’s annual revenues. (World Commerce & Contracting Association).
A massive digital transformation is happening across all facets of the Automotive industry: electric drivetrains, connected vehicles, on-demand features, and direct-to-consumer sales.
OEMs and their Suppliers are under pressure to continue to drive product innovation while reducing costs, improving safety, and increasing top-line and bottom-line revenues.
With contracts touching virtually every dimension of the Automotive supply chain, how can companies ensure the intent of every agreement is fully realized as part of ongoing operations?

Revenue Leakage

OEMs can link production and dealer / sales channel commitments within contracts to rapidly identify and act on order quantity variances due to macroeconomic factors. The Icertis platform enables interoperability with other systems of record.
Supplier Visibility

Tier I through III suppliers can be confident that they have visibility to contractually committed pricing, capacity, and delivery expectations – down to the clause, attribute and obligation.
Risk & Compliance

All stakeholders across the automotive supply chain can create a unified single source of truth for their contracts - both intracompany and external - to better govern risk and decrease time to mitigation.
Margin Protection

OEMs and their suppliers / partners can compare variances between contracts and actuals to pinpoint factors that contribute to margin erosion (e.g., cost, labor, inflation).
Managing Flow Downs

OEMs can be confident that their flow down requirements – including quality and material specifications, schedule expectations, delivery terms – are being analyzed and acted upon to increase compliance and avoid downtime.
Operational Productivity

Participants across the entire automotive supply chain can efficiently manage contracts from creation to renewal or termination.